Correlation Between China Express and Do Fluoride
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By analyzing existing cross correlation between China Express Airlines and Do Fluoride Chemicals Co, you can compare the effects of market volatilities on China Express and Do Fluoride and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in China Express with a short position of Do Fluoride. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Express and Do Fluoride.
Diversification Opportunities for China Express and Do Fluoride
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and 002407 is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding China Express Airlines and Do Fluoride Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Do Fluoride Chemicals and China Express is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on China Express Airlines are associated (or correlated) with Do Fluoride. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Do Fluoride Chemicals has no effect on the direction of China Express i.e., China Express and Do Fluoride go up and down completely randomly.
Pair Corralation between China Express and Do Fluoride
Assuming the 90 days trading horizon China Express Airlines is expected to generate 1.0 times more return on investment than Do Fluoride. However, China Express is 1.0 times more volatile than Do Fluoride Chemicals Co. It trades about -0.03 of its potential returns per unit of risk. Do Fluoride Chemicals Co is currently generating about -0.03 per unit of risk. If you would invest 1,348 in China Express Airlines on September 13, 2024 and sell it today you would lose (505.00) from holding China Express Airlines or give up 37.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Express Airlines vs. Do Fluoride Chemicals Co
Performance |
| Timeline |
| China Express Airlines |
| Do Fluoride Chemicals |
China Express and Do Fluoride Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Express and Do Fluoride
The main advantage of trading using opposite China Express and Do Fluoride positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Express position performs unexpectedly, Do Fluoride can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Do Fluoride will offset losses from the drop in Do Fluoride's long position.| China Express vs. China State Construction | China Express vs. Poly Real Estate | China Express vs. China Vanke Co | China Express vs. China Merchants Shekou |
| Do Fluoride vs. Harbin Air Conditioning | Do Fluoride vs. Shandong Polymer Biochemicals | Do Fluoride vs. China Express Airlines | Do Fluoride vs. Sunwave Communications Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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